Avalon GloboCare Corp (NASDAQ:ALBT) announced that its 40% owned Laboratory Services MSO, LLC (LSM) has signed an exclusive master service agreement (MSA) with GeneX Laboratory Professional Corp to be the exclusive testing provider for toxicology testing, genetic testing, and others.
The developer of innovative cell-based technology, cellular therapy and precision diagnostics said GeneX has licenses with major providers such as Aetna California, United Health Care, Cigna (NYSE:CI), and Medicaid in 21 states, offering a range of high-quality testing, including Liquid Chromatography-Mass Spectrometry (LC-MS) drug testing, genetic testing, urinary testing and COVID-19 PCR testing.
According to Avalon GloboCare, those tests will now be performed utilizing the LSM infrastructure and resources, providing significant expansion opportunity for LSM to perform services through in-network insurance providers previously unavailable.
“This agreement is a key step in expanding LSM’s service offering to customers and providing them access to refer business in-network,” Avalon GloboCare CEO David Jin said in a statement.
“This further expands our geographic testing footprint and should result in significant revenue for Avalon,” he added.
Jin also noted that by leveraging LSM’s experience and infrastructure, Avalon expects to achieve significant synergies with respect to revenue growth and market shares by taking advantage of a unique roll-up opportunity within the highly fragmented market for laboratory testing and services.
Avalon GloboCare is a commercial-stage company dedicated to developing and delivering innovative, transformative, precision diagnostics and clinical laboratory services.
Contact Sean at sean@proactiveinvestors.com